More Jawboning from Australia’s Central Bank

“RBA Governor Glenn Stevens proceeded from characterizing the level of the exchange rate as ‘uncomfortably high’ to noting ‘that foreign-exchange intervention can, judiciously used in the right circumstances, be effective and useful.’  That latter observation was particularly noteworthy because, according to The Wall Street Journal, a currency intervention has essentially been verboten in the decades since Australia shifted to a floating exchange rate in 1983. He closed his remarks on this particular topic with an even more overt statement: ‘Nonetheless, we think that investors are under-estimating the likelihood of a significant fall in the Australian dollar at some point.’”

http://www.investingdaily.com/20682/more-jawboning-from-australias-central-bank-2/

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